Which of the following protects the insured from an unintentional policy lapse due to nonpayment of premium?

The option that protects the insured from an unintentional policy lapse due to nonpayment of premium is the automatic premium loan. This provision allows the insurer to automatically borrow against the cash value of the policy to cover the premium payment if the insured fails to pay it on time. By doing so, the policy remains in force, and the risk of lapse is mitigated, ensuring that the insured continues to have coverage without interruption.

While the grace period provides a window for the insured to pay their premium after the due date before the policy lapses, it does not, by itself, prevent the lapse—only allows for a period in which the payment can be made. The extended term option and nonforfeiture options are related to the policy’s value but deal with what happens once a policy has already lapsed or if the insured opts not to continue paying premiums. Therefore, the automatic premium loan specifically caters to the scenario of preventing a lapse due to missed premium payments.